Australia's fastest Holden grounded under prohibitive laws

The Mercedes and BMW-beating HSV GTS has received critical acclaim in the UK, so why is there a cap on exports?

May 7 2014

Sam Hall

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

HSV GTS at the track

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It may be Australia’s fastest, most powerful homegrown car and arguably the most fitting tribute to our automotive history, but the venerable HSV GTS has become the victim of red tape outside of its own country.

Exports of the 430kW super sedan are well underway into the UK and, unequivocally, the response from the motoring press and enthusiasts has been positive.

In a somewhat vexing verdict for European car makers, the re-badged Vauxhall VXR8 GTS was rated as a world beater by respected publication Autocar during a recent comparison test. It managed to outscore other sledgehammer offerings including the Mercedes-Benz E63 AMG S, the BMW M5 with competition pack, the Audi RS6 Avant and the British-born Jaguar XFR-S by a panel of journalists.

However, the translation of that success in sales is likely to be severely impinged. Only 100 British enthusiasts will be afforded the chance to purchase the GTS from new because of restrictive import laws.

In the UK, the importation of vehicles from outside the European Union is capped at 100 in total if the vehicles have not been pre-approved. The so-called Single Vehicle Approval (SVA) law is similar to the prohibitive Registered Automotive Workshop Scheme (RAWS) enacted in Australia.

“On a full year, 30 cars can be imported,” he said, adding that lead times have meant Vauxhall won’t achieve this target until 2015.

A similar story is playing out in the US, where imports of the Commodore-based Chevrolet SS have effectively been capped to a few thousands vehicles because of Corporate Average Fuel Economy (CAFE) rules which penalise brands that sell too many thirsty cars. Other than its participation in the hugely popular Nascar race series marketing for the SS has also been virtually non-existent.

So far, five HSVs have found their way into the UK, with a total of 15 cars due by year’s end.

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Already, the GTS has found favour with the critical UK motoring press, in a market showing strong demand for high-performance products.

In the Autocar comparison, it scored 4.5 out of 5 stars, and was lauded for its affordability, magnetic ride control, road holding, steering and rewarding nature behind the wheel.

In a separate AutoExpress review, the GTS scored four out of five stars. The publication was seemingly enamoured with the Vauxhall’s 6.2-litre supercharged V8 engine and brute power.

“The handling is good, too, allowing this huge, heavy car to feel as nimble as a lightweight coupé. You have to be really careful with the traction control, though, because it doesn’t take much to light up the rear tyres in the middle of a corner,” the publication said.According to Hucknell, demand for the GTS is set to outweigh any of the previous HSV offerings in the UK, including the E3 Series GTS, Clubsport sports sedans and Maloo ute.

“[Demand is set to be] far better than E3, mainly due to the competitive offer we’ve been able to achieve with the GTS, thanks to a far more favourable exchange rate,” he said.

The Vauxhall VXR8 GTS is available in the UK for £54,999 ($99,895 AUD), about $35,000 AUD less than the equivalent M5 or E63 AMG.”

“There should be no impact on our uptake of HSV cars after Holden ceases production in Melbourne,” Hucknell said.

“HSV’s business case does not depend on Australian production, and if its future models are appropriate to our market, we will of course give them serious consideration.”

This is by no means the first time an Australian-produced car has been hamstrung by restrictive import laws.

Much to the frustration of Holden executives, the SS ute was never shipped into the United States in a mass production capacity because of strict protection for their local manufacturing industry, as well as unfavourable exchange rates.

Australian car makers have claimed poor outcomes in the government’s early Free Trade Agreements with Thailand and the US.

The deals often lend to low trade barriers for car makers wanting to import into Australia, however that trend isn’t reciprocated for local car makers wanting to export out.